NationStates Jolt Archive


Automobile Tariffs Issue

Grand Atoll
12-01-2004, 02:16
My Island of Grand Atoll has an issue concerning cars being made cheaper elsewhere. This should be self-evident, as an atoll seldom has the raw materials to manufacture automobiles and the small population of my nation probably can't afford an industry like this. Really, the biggest surprise about this issue is that my people actually started making cars to begin with. :lol:

Now my problem is this: we are a small nation with a developing economy. I really don't _want_ us to have an automobile industry, but I don't want to make my economy worse by not protecting the industry if the game thinks my country needs one. So ... do I just ignore the issue, or do I try to raise protective tariffs to bolster an industry we shouldn't reasonably be expected to have anyway?

Also, what's the difference between choice #3 and simply ignoring the issue?
Oobag
12-01-2004, 05:45
Well, #3 presumably causes your automobile industry to go down. Not sure what upside it has. Maybe taxes decrease to reflect lower govt. subsidies?
Frigben
12-01-2004, 11:38
I presume the environment would go up, no? If I were you, I'd dismiss it. It's not worth finding out how the third will screw up your economy.
Grand Atoll
12-01-2004, 16:39
I presume the environment would go up, no? If I were you, I'd dismiss it. It's not worth finding out how the third will screw up your economy.

LOL! I was thinking that too - it makes sense! :D Thanks!
12-01-2004, 18:35
I picked the third issue in a different nation. Although the automobile manufacturing industry collapsed, My economy eventually increased increased, because the industries that replaced it (Arms Manufacture and Pizza Delivery) were more suited to my nation. In the short term unemployment probably skyrocketed, as auto manufacture used to be my main industry.